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Home My WebLink About800396.tiff RESOLUTION RE: APPROVAL OF INSURANCE PROGRAM FOR WELD COUNTY. WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to Colorado Statute and the Weld County Home Rule Charter, is vested with the authority of administering the affairs of Weld County, Colorado, and WHEREAS, on November 7, 1979, the Board of County Commissioners authorized the issuance of a request for proposal for an insurance program for Weld County in 1980, with coverage to become effective January 15 , 1980, and WHEREAS, the Greeley-Weld Insurors and Arthur J. Gallagher & Co. sub- mitted proposals for consideration for the insurance program for 1980, and WHEREAS, the Insurance Selection Committee, comprised of the Board of County Commissioners, Lucille Gallagher of Monfort's of Colorado, Dick Barrett - Personnel Director, Thomas David - County Attorney, and Don Warden - Director of Finance and Administration , reviewed the proposals and discussed the proposals with the presenters on January 3, 1980, and WHEREAS, the Insurance Selection Committee, after hearing and studying both proposals, has recommended to the Board of County Commissioners that the optimum proposal for Weld County appears to be the proposal presented by Authur J. Gallagher & Co. , and WHEREAS, the Insurance Selection Committee specifically recommends the adoption of the proposal as presented with the FIVE MILLION DOLLAR ($5,000,000) limits, and WHEREAS, the Arthur J. Gallagher & Co. proposal includes an accounting for the interest gain on the cash flow from the program. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners that the Board does hereby adopt the recommendation of the Insurance Selection Committee to approve the Arthur J . Gallagher proposal with the FIVE MILLION DOLLAR ($5,000,000) limits, and BE IT FURTHER RESOLVED that the Director of Finance and Administration be designated as the Insurance Representative of the County to assist Arthur J. Gallagher & Co. in the installation of the protected self-insurance pro- gram, and BE IT FURTHER RESOLVED that the Board hereby authorizes the County Treasurer to .account for the interest in the IGS-Insurance Fund and to credit that Fund for the interest earned on it's cash balance from 1980 forward, and BE IT FURTHER RESOLVED that the Chairman of the Board is authorized to submit certified letters to the Greeley-Weld Insurors and appropriate insurance companies cancelling all miscellaneous coverage that does not expire effective January 15, 1980, and BE IT FURTHER RESOLVED that the Chairman of the Board of County Commis- sioners is hereby authorized to execute all contracts necessary to imple- ment the self-insurance program as submitted by Arthur J. Gallagher & Co. , and BE IT FURTHER RESOLVED that Arthur J. Gallagher & Co. is hereby designated as the Agent-Broker of record for coverage for Weld County, effective January 15, 1980 through January 15, 1983. BE IT FURTHER RESOLVED that the Director of Finance and Administration will inform Greeley-Weld Insurors of the County Commissioners final determina- tion concerning the proposals submitted. The above and foregoing resolution was, on motion duly made and seconded, adopted by the following vote on the 9th day of January, A.D. , 1980. BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO /7 `7 -� at ATTEST: '�l�' ,a. .'n I s , c.la., r✓ (' // ./ c L �) C. W. Kirby, Chairm Weld County Clerk and Recorder and Clerk to the Bo Norman Carson, Commissioner /By. eputy County C r Lyd u mar, Commie/ A ROVED AS TO FORM: o`,,„ ara ez).,,e_e_rj Leonard Roe, Commissioner County �� Attorney June K. Steinmark,� Commissioner DATE PRESENTED: JANUARY 9, 1980 mtmoRAnDurr To County Commissioners Dee January 8. 1980 COLORADO From Don Warden Subject. Insurance Recommendation On January 3, 1980 the Insurance Selection Committee reviewed with your Board the insurance proposals submitted by the Greeley-Weld Insurors and Arthur J. Gallagher and Co. in response to the November 7, 1979 request for proposals. The committee was composed of the following members: Tom David, County Attorney; Lucille Gallagher, Monfort's Risk Manager; Dick Barrett, Personnel Director; and Don Warden, Director of Finance and Administration. The insurance program recommended unanimously by the Insurance Selection Committee is the Protected Self-Insurance program submitted by Arthur J. Gallagher & Co. The County is currently a non-insurer in several areas of exposure to loss. The proposed program places a limit of $225,000 on non- insurance, while at the same time converting Weld County's insurance to self-insurance, thus eliminating the risk of pure self-insurance or non- insurance. Exhibit A specifies what is included and the exclusions which are not insurable risk or not required for County operations. Exhibit B specifies the limits of liability included in the program. The program calls for a Loss Fund of $225,000, which represents the maximum loss payments the County would be exposed to in the coming year. In addition, a Stop Loss of $100,000 exists, which means that no loss in excess of $100,000 (combined perils) will be charged to the Loss Fund. Therefore, one catastrophe claim could not wipe out the entire fund. Gallagher Bassett Insurance Service will supervise and administer the Protected Self-Insurance Plan of the County which will include the following functions: . Market all required excess insurance . Qualify the County as self-insurer . Establish and administer a complete risk management program . Handle all claims, loss adjustments , investigations, and settlements . Subrogate claims for the County . Consult with the County on an insurance matter to assist in achieving a successful self-insurance program . Appraise all County owned facilities . Do risk analysis . Establish a safety and loss prevention program . Prepare an annual insurance report for management. The program with the $1 ,000,000 limit will have an expected minimum cost range of $198,313 to a maximum cost of $379,332 as detailed below: Minimum Maximum Service Fee $ 27,500 $ 27,500 Value of Cash Retention (20,700) (20,700) Self-Insurance Loss 43,981 225,000 Premiums 140,505 140,505 Boiler 3,027 3,027 Officials ' Bonds 4,000 4,000 Total $198,313 $379,332 The Greeley-Weld Insurors proposal would cost $349,269 in 1980, but would not include the following coverage as presented: auto property damage, glass, earthquake, flood, water damage, fine arts, ordinance deficiencies, director's liability, non-owned aircraft, and would require a $1 ,000 deductible on pro- perty, and a schedule of all property. The Gallagher proposal also included an indication to increase the Automobile and General Liability limits to $5,000,000 per occurrence for $21 ,000 annually, and a quote to increase the Public Official Liability to $5,000,000 for $6,529 annually. The Insurance Selection Committee recommends the $5,000,000 limits. Although the protected self-insurance proposal is a deviation for the historical insurance program in Weld County, it is the opinion of the Insurance Selection Committee that the program as presented by Arthur J. Gallagher, & Co. is a prudent and cost effective way to management and will protect Weld County against the many risks encountered by a County government. The protected self- insurance approach has proven successful in a number of public entities in the last decade. The ultimate goal of the Protected Self-Insurance Program is to contain and reduce long term costs. The combination of loss control , loss prevention, proper funding, and broad catastrophe coverage should reduce exposure and reduce insurance costs. LIIBIT "A" WHAT IS INCLUDED 1 . All Buildings 2. All Contents 3. General Liability 4. Auto Liability 5. Auto Physical Damage 6. Money & Securities 7. Fine Arts 8. Glass 9. Employee Fidelity 10. Public Official Liability 11 . Errors and Omissions 12. New Construction 13. Special Events 14. Liquor Liability 15. Medical Payments (Auto-Premises) 16. All County Departments WHAT IS NOT INCLUDED 1 . Property Losses of a Degenerative Nature (wear and tear, deterioration) 2. War Risk and Nuclear Damage 3. Personally owned autos 4. Hospital Malpractice Ins. 5. Pollution, Seepage and Contamination 6. Aircraft Liability or Physical Damage 7. Airport Liability 8. Inverse Condemnation EXHIBIT "B" PROPOSAL Limits of Liability Automobile Liability $1,000,000 per person, $1,000,000 per occurrence S.1.R.-$100,000 General Liability $1,000,000 per person, $1,000,000 per occurrence S.I.R.-$100,000 Public Official Liability $1,000,000 each claim and aggregate S.LR.-$100,000 • Sheriff's Professional $1,000,000 per occurrence Property $6,000,000 each and every loss each and every location Aggregate Excess $400,000 in excess of $225,000 Annual Loss Fund Employee Fidelity $100,000 any one claim Money and Securities $100,000 any one claim Worker's Compensation To be added upon approval. Note: Flood limited to $250,000 per occurrence and aggregate. Earthquake limited to $5,500,000 Annual Aggregate. Public Official Liability subject to Standard Form. NOTE: $5,000,000 limit for Automobile and General Liability $5,000,000 limit on Public Official Liability ARTHUR J. GALLAGHER & CO. The Tower,Golf Road, Rolling Meadows, Illinois 60008 • 312/640-8500 INSURANCE BINDER THIS IS TO CERTIFY that the insurance hereinafter described has been bound with . Underwriters at Lloyd' s , London and Other British Companies Policy #SL3629SLC5677 Insured Board of County Commissioners of the County of Weld Address 911 9th Avenue Greely, Colorado 80631 Term: Effective at 12 :01 AMon the 15th day of January 19 BOand ending at 12 :01 AM on the 15th day of March 19 80 Standard time at the address of assured as stated herein Amount or Limit $400 ,000 per Occurrence Kind of Insurance Casualty Drop Down Buffer This binder is subject to the following special conditions: Excludes hospitals and owned airports This binder is issued under authority granted Arthur J. Gallagher& Co. by the insurance company indicated above. ARTHUR J. GALLAGHER & CO. Producer: Jay Odice DATE January 14 , 1980 By A-220 Ana Ilk Jr, ARTHUR J. GALLAGHER & CO. The Tower,Golf Road, Rolling Meadows, Illinois 60008 • 312/640-8500 INSURANCE BINDER THIS IS TO CERTIFY that the insurance hereinafter described has been bound with International Surplus Lines Insurance Company Policy # T.B.D. Insured Board of County Commissioners of the County of Weld Address 911 9th Avenue Greely, Colorado 80631 Term: Effective at 12: 01 AM on the 15th day of January 19 80 and ending at 12 :01 AM on the 15thday of March 19 80 Standard time at the address of assured as stated herein Amount or Limit $6, 000, 000 each and every loss each location excess of $500, 000 occurrence $12, 000, 000 each and every loss locs. 89 and 82 Kind of Insurance Excess Property This binder is subject to the following special conditions: "All risk" following form. Earthquake limited to $5, 500, 000 annual aggregate Excludes hospitals and owned airports This binder is issued under authority granted Arthur J. Gallagher &Co. by the insurance company indicated above. Producer: Jay Odice ARTHUR J. GALLAGHER & CO. January 14, 1980 v(41 /`.f�_ L�' DATE By //I A-no L' ARTHUR J. GALLAGHER & CO. The Tower,Golf Road, Rolling Meadows, Illinois 60008 • 312/640-8500 INSURANCE BINDER THIS IS TO CERTIFY that the insurance hereinafter described has been bound with Midland Insurance Company Policy # XL147-921 Insured Board of County Commissioners of the County of Weld Address 911 9th Avenue Greely, Colorado 80631 Term: Effective at 12: 01 AM on the 15th day of January 1880 and ending at 12: 01 AM on the 15U-day of March 19 80 Standard time at the address of assured as stated herein Amount or Limit $750, 000 per occurrence and aggregate combined single limit excess of $250, 000 per occurrence Kind of Insurance Excess automobile and General Liability including Police Professional This binder is subject to the following special conditions: Excludes hospitals and owned airports This binder is issued under authority granted Arthur J.Gallagher&Co. by the insurance company indicated above. Producer: Jay Odice ARTHUR J. GALLAGGHHER & CO. DATE January 14, 1980 By vxk mil/ ` A-220 !J ARTHUR J. GALLAGHER (Si CO. The Tower,Golf Road, Rolling Meadows, Illinois 60008 • 312/640-8500 INSURANCE BINDER • THIS IS TO CERTIFY that the insurance hereinafter described has been bound with Northumberland General Insurance Company Insured Board of County Commissioners of Weld County Address 911 9th Avenue Greely, Colorado 80631 Term: Effective at 12 :01 Anton the 15th day of January 19 80 and ending at 12 :01 AM on the 15th day of March 19 80 Standard time at the address of assured as stated herein Amount or Limit $4 , 000 ,000 Occurrence and Aggregate Excess of $1 ,000 ,000 Occurrence and Aggregate Kind of Insurance Excess Casualty This binder is subject to the following special conditions: Excludes Hospitals and Owned Airports This binder is issued under authority granted Arthur J. Gallagher& Co. by the insurance company indicated above. Producer: Jay Odice ARTHUR J. GALLAGHER & CO.AfeDATE January 14 , 1980 By ./124/64-- A-220 N ARTHUR J. GALLAGHER & CO. The Tower,Golf Road, Rolling Meadows, Illinois 60008 • 312/640-8500 INSURANCE BINDER THIS IS TO CERTIFY that the insurance hereinafter described has been bound with International Surplus Lines Insurance Company Policy # GP20165 Insured Board of County Commissioners of the County of Weld Address 911 9th Avenue Greely, Colorado 80631 Term: Effective at 12: 01 Anton the 15thsay of January 19 80 and ending at 12 : 01 AM on the 15th day otMarch 19 80 Standard time at the address of assured as stated herein Amount or Limit $5, 000, 000 each loss and aggregate Kind of Insurance Public Official Liability This binder is subject to the following special conditions: $200, 000 Retention each loss Standard form as proposed Excludes hospitals and owned airports This binder is issued under authority granted Arthur J.Gallagher& Co. by the insurance company indicated above. Producer: Jay Odice ARTHUR J. GALLAGHER & CO. ,. l0 224 DATE January 14, 1980 By 0.-220 as % my® ARTHUR J. GALLAGHER & CO. The Tower,Golf Road, Rolling Meadows, Illinois 60008 • 312/640-8500 INSURANCE BINDER THIS IS TO CERTIFY that the insurance hereinafter described has been bound with Underwriters at Lloyd ' s , London and Other British Companies Policy # SL3628SLC5676 Insured Board of County Commissioners of the County of Weld . Address 911 9th Avenue Greely, Colorado 80631 Term: Effective at 12 :0 1AM on the 15th day of January 19 80and ending at 12 :01AM 01AM on the 15th day of March 19 80 Standard time at the address of assured as stated herein Amount or Limit Property -- $400 ,000 Each and Every Loss , Each Location Crime --- $100 ,000 Each Loss All Third Party Liabilities - $250 ,000 Occurrence Combined Single Limit Aggregate - $400 ,000 Ultimate Net Loss Excess of $225 ,000 Loss Fund Kind of Insurance Package This binder is subject to the following special conditions: $250 ,000 Annual Aggregate on Flood $200 , 000 Annual Aggregate Errors and Omissions $100 , 000 Per Occurrence Self-Insured Retention Excludes Hospitals and Owned Airports This binder is issued under authority granted Arthur J.Gallagher& Co. by the insurance company indicated above. ARTHUR J. GALLAGHER & CO. Producer : Jay Odice DATE January 14 , 1980 By XL-- �/L( c.-zzo Hello